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Pocket Pages

I have Katie's stitched pocket pages, but I cannot figure out how to attach photos to the png files. I had hoped they would be in psd files, but could someone tell me how to use the pocket pages correctly?

Open a new 12x12 document.
Get the Move tool and drag the grid onto the new document. (I like to drag directly from the Layers panel onto the new document with these since they are hard to grab.)
Then get the Rectangle tool. In the Options bar across the top of the screen, set the color to a color that contrasts with your background.
Draw out a rectangle that fills one of the grid holes.
Now drag that layer under the grid layer in the Layers panel.
Open a photo and drag it onto the document.
Place the photo above the rectangle you made - making sure the photo layer is one space above the rectangle in the Layers panel.
Now with the photo layer selected, create a clipping mask (press Ctrl G [Mac:Cmd G] in Elements, or Alt Ctrl G [Mac: Opt Cmd G] in Photoshop.)
Repeat for the remaining grid holes.

Another way would be to drag the photo under the grid and then delete the parts of the photo that lie outside of the grid hole. Here's a video on our blog that shows you how to do that. It's for PNG frames, but the technique is exactly the same. On the grids, expanding by about 3 pixels seems to work well.